Fight back against solar installation fraud, misrepresented savings, unlicensed installers, and defective work in Texas. Use TDLR regulations, Tex. Occ. Code electrician requirements, and the Texas DTPA to recover your losses.
Common Texas Solar Panel Fraud Schemes
Fraud Type
Warning Signs
Typical Damages
Inflated savings promises
Claims of 80-100% utility bill reduction without proper site analysis
$5,000 - $30,000
Unlicensed installation
No TDLR license verification, workers seem unqualified
$10,000 - $40,000
Financing fraud
Hidden fees, higher rates than quoted, undisclosed liens
$2,000 - $15,000
False tax credit claims
Guaranteeing tax credits you may not qualify for
$3,000 - $10,000
Defective installation
Roof damage, improper wiring, code violations
$5,000 - $50,000
Equipment misrepresentation
Lower-grade panels than promised, used equipment
$3,000 - $20,000
Texas Regulatory Protections
TDLR Licensing: Solar installers must have proper electrical licenses.
DTPA Treble Damages: Up to 3x actual damages for knowing fraud.
Home Solicitation Act: 3-day cancellation right for door-to-door sales.
Red Flags to Document
High-pressure sales tactics or limited-time offers.
Refusal to provide license numbers or references.
Verbal promises not included in written contract.
System producing far less than projected.
No permit pulled or failed inspections.
Financing Trap Warning: Many solar fraud schemes involve predatory financing. If you signed a loan or PACE financing, you may owe payments even if the solar company committed fraud. Address the financing separately - dispute the loan based on fraud-in-the-inducement while pursuing the installer.
Texas Legal Framework for Solar Fraud
Texas Department of Licensing and Regulation (TDLR)
Electrician Licensing: TDLR enforces Tex. Occ. Code Chapter 1305, requiring proper licensing for electrical work including solar installation.
License Verification: Verify installer licenses at tdlr.texas.gov.
Complaint Filing: TDLR investigates unlicensed activity and can impose penalties.
Unlicensed Work: Contracts with unlicensed contractors may be voidable, and consumers may recover all payments.
Texas Occupations Code - Electricians
Chapter 1305: Requires electrical work to be performed by licensed electricians or under their supervision.
Section 1305.002: Defines electrical work to include installation of equipment generating electricity (solar panels).
Section 1305.162: Prohibits performing electrical work without proper license.
Section 1305.165: Criminal penalties for unlicensed electrical work.
Texas Deceptive Trade Practices Act (DTPA)
Tex. Bus. & Com. Code Section 17.46(b): Prohibits misrepresentation of goods and services, failure to disclose material information, and unconscionable conduct.
Section 17.50: Actual damages plus up to 3x for knowing violations, plus attorney fees.
Section 17.505: 60-day pre-suit notice required before filing DTPA lawsuit.
Home Solicitation Transactions Act
Tex. Bus. & Com. Code Chapter 601: Applies to door-to-door solar sales.
Section 601.052: Buyer has 3 business days to cancel home solicitation sales.
Section 601.053: Seller must provide cancellation notice. Failure extends cancellation period.
Statutes of Limitations
Claim Type
Time Limit
Statute
DTPA Claims
2 years
Tex. Bus. & Com. Code 17.565
Written Contract
4 years
Tex. Civ. Prac. & Rem. Code 16.004
Fraud
4 years from discovery
Tex. Civ. Prac. & Rem. Code 16.004
Construction Defect
10 years (statute of repose)
Tex. Civ. Prac. & Rem. Code 16.009
Unlicensed Contractor Advantage: If your solar installer was unlicensed, Texas law provides strong remedies. The contract may be voidable, you may recover all payments made, and the installer faces both civil and criminal liability. Verify licensing status immediately.
Documentation Checklist
Contract and Sales Documents
Signed installation contract (all pages).
Financing agreement and loan documents.
Marketing materials and sales brochures.
Energy savings estimates and projections.
Equipment specifications promised.
Warranty documentation.
Performance Evidence
Utility bills before installation.
Utility bills after installation.
Solar monitoring system data (actual production).
Comparison of promised vs. actual savings.
Comparison of promised vs. actual production.
Installation Documentation
Photos of installation (before, during, after).
Photos of any defects, damage, or poor workmanship.
Building permits (or evidence none were pulled).
Inspection reports and any failed inspections.
Equipment model numbers actually installed.
TDLR license verification for installer.
Communications
All emails and text messages with sales rep and company.
Notes from phone conversations (dates, names, what was said).
Written complaints submitted to the company.
Company responses and resolution attempts.
Recordings of sales pitches if legally made.
Verify Licensing Now: Search the TDLR license database at tdlr.texas.gov to verify your installer's licensing status. Document the search results with screenshots showing whether licenses were valid at time of installation. Unlicensed installation dramatically strengthens your fraud claim.
Demand Letter Strategy
DTPA Pre-Suit Notice (Required)
60-day written notice required before filing DTPA lawsuit.
Must describe specific complaint in reasonable detail.
Must state economic damages claimed.
Must state attorney fees claimed (if any).
Must describe other relief sought.
Send via certified mail, return receipt requested.
Letter Components
Header: Mark as "NOTICE PURSUANT TO TEX. BUS. & COM. CODE SECTION 17.505"
Background: Contract date, installation date, system specifications promised.
TDLR Violations: Document unlicensed work under Tex. Occ. Code 1305.
DTPA Violations: Cite specific subsections of 17.46(b) that apply.
Performance Failures: Compare promised vs. actual energy production/savings.
Damages: Itemize all losses including overpayment, repair costs, diminished value.
Demand: Specify total amount and 60-day deadline.
Multiple Targets
Solar Installation Company: Primary target for breach and fraud.
Sales Company: If different from installer, may be liable for misrepresentations.
Financing Company: May be liable if they knew of fraud or violated lending laws.
Individual Sales Rep: May have personal liability for fraud.
Financing Complications: If you financed through the solar company or a partner lender, address the loan separately. You may need to dispute charges with the lender based on fraud-in-the-inducement while pursuing the installer. Do not stop making loan payments without legal advice, as this could damage your credit.
Sample Texas Solar Fraud Demand Letter
[Date]
Via Certified Mail, Return Receipt Requested
[Solar Company Name]
[Company Address]
[City, Texas ZIP]
Re: NOTICE PURSUANT TO TEX. BUS. & COM. CODE SECTION 17.505
60-Day Pre-Suit Demand - Solar Installation Fraud
Contract Date: [Date]
Installation Address: [Your Address]
Amount Demanded: $[Amount]
Dear [Company Owner/Manager]:
This letter constitutes formal notice pursuant to the Texas Deceptive Trade Practices-Consumer Protection Act, Tex. Bus. & Com. Code Section 17.505, that [Solar Company Name] has engaged in deceptive trade practices and violated Texas licensing laws in connection with the solar panel installation at my residence. I hereby demand payment of $[Amount] within sixty (60) days.
BACKGROUND
On [Contract Date], I entered into a contract with [Solar Company Name] for installation of a solar panel system at [Your Address]. I was promised:
- A [X kW] solar system with [Brand/Model] panels
- Energy production of [X] kWh annually
- Utility bill reduction of [X]% or $[X] per month
- Federal tax credit of $[X]
- Total system cost of $[Amount] with financing at [X]%
I paid $[Deposit Amount] on [Date] and financed the remaining $[Amount] through [Financing Company].
LICENSING VIOLATIONS
Upon investigation, I have discovered that [Solar Company Name] and/or its installers were not properly licensed under the Texas Occupations Code Chapter 1305 at the time of installation.
Texas law requires electrical work, including solar panel installation, to be performed by licensed electricians or under the supervision of a licensed master electrician. Tex. Occ. Code Section 1305.162 prohibits performing electrical work without proper licensure.
My search of the TDLR license database on [Date] revealed [describe findings: no license found / license expired / license in different name / etc.].
Contracts for unlicensed electrical work are voidable under Texas law, and I am entitled to rescission and full refund of all amounts paid.
DECEPTIVE TRADE PRACTICES
[Solar Company Name] has violated the Texas DTPA through the following conduct:
1. MISREPRESENTATION OF CHARACTERISTICS (Section 17.46(b)(5), (7)):
Your sales representative [Name] represented that this system would produce [X] kWh annually and reduce my utility bills by [X]%. In reality, the system has produced only [X] kWh over [time period], resulting in utility savings of only [X]% - a fraction of what was promised.
2. FAILURE TO DISCLOSE (Section 17.46(b)(24)):
You failed to disclose:
- That your installers lacked proper TDLR licensing
- [Hidden fees, true financing costs, etc.]
- [Equipment substitutions, used equipment, etc.]
3. MISREPRESENTATION REGARDING TAX CREDITS (Section 17.46(b)(12)):
Your representative guaranteed I would receive a federal tax credit of $[Amount]. [Describe actual tax credit situation - didn't qualify, smaller amount, etc.]
4. [ADDITIONAL VIOLATIONS AS APPLICABLE]
INSTALLATION DEFECTS
In addition to the fraud described above, the installation was defective:
- [Describe defects: roof damage, improper wiring, failed inspection, code violations, etc.]
- [Cost of repairs needed: $X]
ECONOMIC DAMAGES
I have suffered the following economic damages:
Contract price paid: $[Amount]
Financing charges: $[Amount]
Difference between promised and actual utility savings (over X months): $[Amount]
Tax credit shortfall: $[Amount]
Cost to repair defects: $[Amount]
Cost for independent inspection: $[Amount]
TOTAL ECONOMIC DAMAGES: $[Amount]
Under Tex. Bus. & Com. Code Section 17.50(b)(1), because your conduct was committed knowingly, I am entitled to recover up to three times my economic damages, plus court costs and reasonable attorney's fees.
DEMAND
I demand that [Solar Company Name]:
1. Rescind the contract and remove the defective solar system from my property at your expense;
2. Refund all amounts paid, including deposits and financing payments, totaling $[Amount];
3. Pay for all roof and property repairs necessitated by your defective installation;
4. Release me from all financing obligations;
5. Pay my attorney's fees and costs.
ALTERNATIVELY, if removal is not practical, I demand:
1. Payment of $[Amount] representing the difference in value between what was promised and what was delivered;
2. Completion of all necessary repairs to bring the system to code;
3. Refund of $[Amount] representing overpayment based on misrepresented system performance.
RESPONSE REQUIRED
You have sixty (60) days from receipt of this letter to respond with a written settlement offer. Pursuant to Tex. Bus. & Com. Code Section 17.505(d), I will provide you opportunity to inspect the system upon reasonable notice.
If you fail to resolve this matter within 60 days, I will:
1. File suit in [County] Court seeking actual damages, treble damages, court costs, and attorney's fees;
2. Report this matter to TDLR for unlicensed electrical work;
3. File complaints with the Texas Attorney General Consumer Protection Division;
4. Report to the Better Business Bureau;
5. Post truthful reviews describing my experience.
I remain willing to resolve this matter without litigation if you act promptly and in good faith.
Sincerely,
[Your Name]
[Your Address]
[Your Phone]
[Your Email]
Enclosures:
- Installation contract
- TDLR license search results
- Utility bills (before and after)
- System production data
- Photos of defects
- Communications with sales rep
Many fraudulent solar companies close and reopen under new names. Research the principals and identify any successor or related companies. You may also have claims against the financing company if they were aware of the fraud or violated lending laws. File complaints with TDLR and the Texas AG regardless, as this helps build cases against repeat offenders.
Stopping payments can damage your credit and result in collection actions. Instead, dispute the loan in writing with the financing company based on fraud-in-the-inducement. Some states have "holder in due course" limitations that allow defenses against assignee lenders. Consult with an attorney before stopping payments.
Yes. An independent solar inspection by a licensed electrician documents defects, code violations, and performance issues. The inspection report becomes key evidence for your demand letter and any litigation. Cost is typically $200-$500 and is recoverable as damages if you prevail.
Attorney Services & Contact
Texas Solar Fraud Recovery
I represent Texas homeowners defrauded by solar installation companies. From inflated savings promises to unlicensed installers and defective work, I pursue full recovery through DTPA claims, TDLR complaints, and litigation.
Email owner@terms.law or use Calendly for a paid strategy session.